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The Puzzle of China's Township¥VVillage Enterprises: The Paradox of Local Corporatism in a Dual-Track Economic Transition

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  • Peter Ping Li

    (California State University)

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    Abstract

    This paper seeks to reconcile and synthesize the diverse views about the township¥Vvillage enterprises (TVEs) and local corporatism in the context of ongoing institutional changes in China as a transition economy. Specifically, I attempt to integrate the economic, political, cultural, and social explanations for TVEs, especially the two competing views of market competition and political corruption. I focus on the puzzle of TVE efficiency as well as the paradox of local corporatism as a government¥Vbusiness partnership with both a positive function of public alliance for wealth creation and a negative function of private collusion for wealth transfer. I argue that the key to both the puzzle of TVEs and the paradox of local corporatism lies in China's dual-track reform paradigm (i.e. a market-for-mass track and a state-for-elite track). Lastly, I discuss the critical implications for theory building and policymaking regarding economic transition in general.

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    Bibliographic Info

    Article provided by International Association of Chinese Management Research in its journal Management and Organization Review.

    Volume (Year): 1 (2005)
    Issue (Month): 2 (July)
    Pages: 197-224

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    Handle: RePEc:cmr:mor101:v:1:y:2005:i:2:p:197-224

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    Related research

    Keywords: Business Ethics; China; Chinese Context; Corruption; Duality; Duality Lens; Economic Reform; Formal Institutions; Guanxi; Information Institutions; Institutional Change; Institutional Environment; Institutional Transitions; Interpersonal Networks; Local Corporatism; Local Government; Reform; Systemic Corruption; Township-village Enterprises; Transitional Economy;

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    Cited by:
    1. Krug, B. & Hendrischke, H., 2012. "Market Design in Chinese Market Places," ERIM Report Series Research in Management ERS-2012-021-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
    2. Krug, B. & Hendrischke, H., 2006. "Institution Building and Change in China," ERIM Report Series Research in Management ERS-2006-008-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
    3. Peter Li, 2012. "Toward an integrative framework of indigenous research: The geocentric implications of Yin-Yang Balance," Asia Pacific Journal of Management, Springer, vol. 29(4), pages 849-872, December.
    4. Li, Peter Ping, 2007. "Toward an integrated theory of multinational evolution: The evidence of Chinese multinational enterprises as latecomers," Journal of International Management, Elsevier, vol. 13(3), pages 296-318, September.

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